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Covered Call
BEGINNER income Capped lossEarn rent on shares you already own.
⚠ Requires owning 100 shares per contract. A covered call is an overlay on stock you already hold — not a standalone trade idea — so it is never auto-recommended; see "For your positions" below for your own holdings.
When to use it
You own 100+ shares (or were assigned via the Wheel) and are neutral-to-mildly-bullish. Sell a 30–45 DTE call at 0.20–0.40 delta; exit at ~75% max profit.
Max profit
Premium + (call strike − cost basis).
Max loss
The stock falling, cushioned by the premium.
Payoff at expiry
illustrative shape — not to scale
■ profit zone
■ loss zone
X axis = stock price at expiry →
How it's built
Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.
For your positions
You don't have any stock holdings of 100+ shares to apply a Covered Call to yet. Connect your broker on the Trade Log so we can analyse your positions, or browse a worked example below.
A Covered Call requires owning 100 shares per contract — it's an overlay on stock
you already hold, not a standalone trade idea — so we never list generic per-ticker recommendations for it.
Your own eligible holdings (if any) are shown above under "For your positions".
Open any ticker's trade cockpit and pick this strategy to see specific strikes, max loss, and max profit.